Korea Plans to Boost Medical Equipment Exports

The South Korean government is revving up regional exports of medical equipment, boosting the competitive pressures for device companies in Asia.

According to the Korea Times, the South Korean government is working to support increased exports for its medical equipment industry, involving such moves as opening facilities in Vietnam and Indonesia to boost local demand for medical equipment. A major key for business growth in Asia is to do so with regionally based companies, and South Korea is also tapping into that potential by targeting local doctors and importers with marketing and product support.

According to the article, South Korea has come into its own with medical equipment product development, and its companies see ripe opportunities for expansion in emerging markets throughout the region and beyond. Korean medical equipment exports hit USD 2.6 billion in 2012, according to data from the Korea Health Industry Development Institute (KHIDI; Chungcheongbuk-do), with Brazil, Russia, India, China, and South Africa serving as the largest markets. That number represents a 17.5% increase over 2011 figures.

South Korea also serves as a beachhead to reach both the country's own patient population and those in other Asian countries. Several multinational healthcare companies have taken note of these developments. For example, Varian Medical Systems (Palo Alto, CA, USA), a maker of cancer-treating radiotherapy devices and imaging equipment, which has established Varian Medical Systems Korea, a subsidiary that will support the launch of its TrueBeam radiotherapy system in the country, and serve as an outpost from which it to service clients in other Asian countries.

Another example is GE Healthcare (GE; Chalfont St. Giles, United Kingdom), which has signed an agreement with South Korean X-ray manufacturer Vatech (Hwaseong, Korea), expanding the company's imaging might and giving it a broader base in the growing local market. Under the deal, GE will pick up mammography assets from Rayence, a Vatech segment, for an undisclosed sum, folding the technology into its detection and guidance solutions business. In addition, GE has signed on to supply CMOS detectors Rayence can sell in the global market.

Related Links:
The Korea Times
Korea Health Industry Development Institute
Vatech